Mortgage Loan Audits: The Answer if Not Eligible for Loan Modification

Some borrowers covered by the White House homeowner affordability plan have already seen the benefits----but what about everyone else?  It seems that Forensic mortgage loan document audits-the process whereby the closing documents are scrutinized by professional mortgage document auditors for violations of federal law—may be the “bailout” for the rest of us. The plan covers only a narrow range of loans and borrowers—it leaves out investors, those without documented income, and those without FNMA guideline loans-so called “exotic” loans. There have also been a rise in cases of forensic loan audit scams to be aware of as well.

With mortgage loan document audits fast becoming the favorite tool of loan modification companies and attorneys throughout the nation, the lenders are attempting to pare their losses. Said one prominent Las Vegas based attorney specializing in defending homeowners by filing TILA and RESPA lawsuits, who requested we not use his name

“….everything helps in defending these homeowners from foreclosure.  The mortgage loan document audit is another tool in the toolbox.…”  He went on to say “…… there are other tricks of the trade to keep someone out of foreclosure, but the mortgage loan audit really “sets the table” so to speak.  ….”

Mortgage loan document audit firms like Florida based MitiGroup, LLC (http://www.documentaudit.org) have seen their business triple on the past month from loan mod companies.  Said company President Ethan Greenberg:  “...even our cursory computer audit can help many borrowers, and our forensic loan document audit is the favorite of attorneys trying to form a legal case based on TILA or RESPA violations or predatory lending.”

As more borrowers face the disturbing prospect of foreclosure, the loan modification wave is expected to intensify in 2009 based on U.S. government statistics.  As the federal bailout package is slated to “trickle down to main street”, it appears that a system of checks and balances is being established between independent loan modification companies, attorneys, and the lenders themselves.  The net result should help more people stay in their homes.